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U.S. bank First Citizens will buy "all deposits and loans" from Silicon Valley Bank (SVB), which failed in early March, the FDIC announced late Sunday.
The transaction affects $72 billion in assets, the FDIC said, adding that "all 000 SVB branches will open as First Citizens" on Monday.
The bankruptcy of SVB unleashed panic in the US banking sector, with repercussions on European markets. SVB, close to the technology industry, was suddenly in trouble after announcing the sale of 21,000 million dollars in financial securities, with a loss of 1,800 million, and its intention to increase capital.
With the bank facing massive withdrawals, authorities deemed it insolvent on March 10 and took control of its assets, making it the largest bank failure in the United States since 2008. At the time, it had $119 billion in deposits, according to the FDIC.
The new entity reopened its doors on March 13 under the name of Silicon Valley Bank Bridge, with a manager appointed to direct the day-to-day running of the business until its fate is decided.
All of the bank's loans and deposits will now be managed by First Citizens, while the FDIC will retain about $90 billion in other assets.
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